Table of Contents
Executive Summary
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- The market
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- Figure 1: Turnover of UK legal services industry, 2011-15
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- Figure 2: Turnover of UK solicitor firms, by type of work, 2015
- Market factors
- Companies
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- Figure 3: Breakdown of solicitor firms, March 2014 and February 2016
- What we think
Key Insights
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- To date, what has been the impact of ABS on the legal services market?
- Is the move by the big accountants into legal services posing a threat to traditional firms?
- Is the trend towards unbundling of legal services set to continue?
- What are the current technological developments in the legal services market?
UK Economy
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- Overview
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- Figure 4: UK GDP quarterly development, 2003-16
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- Figure 5: UK GDP in economic downturns and recoveries since 1979
- Inflation
- Interest rates
- House prices
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- Figure 6: UK house price changes, 2004-16
- Consumer spending
- Manufacturing
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- Figure 7: UK manufacturing, 2013-16
- Business investment
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- Figure 8: UK GFCF 2003-15
- Imports
- Exports
Market Factors
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- Key points
- Regulation and government policy
- The Legal Services Act 2007
- Legal Services Act opens up market to non-lawyers
- Barriers for ABS to be further reduced to boost competition
- CMA launches study into legal services market
- Legal Aid, Sentencing and Punishment of Offenders Act cuts legal aid funding
- Government scraps major reform of Legal Aid system in England and Wales
- Rise in court fees may deter users from bringing high value disputes to London
- Nearly a fifth of all courts and tribunals in England and Wales to close
- Other factors
- Residential and commercial property transactions
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- Figure 9: UK residential property transaction completions, by country, 2011-15
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- Figure 10: UK residential property transaction completions, 2011-15
- Figure 11: UK non-residential property transaction completions, by country, 2010-15
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- Figure 12: UK non-residential property transaction completions, 2011-15
- Trends in M&A activity
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- Figure 13: Mergers and acquisitions involving UK companies, 2004-15
- Number of IPOs down in 2015
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- Figure 14: Number of main market and AIM listed companies, 2008-15
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- Figure 15: Number of main market and AIM listed companies, 2008-15
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- Figure 16: Number of company IPOs on London Stock Exchange, 2011-15
- Rise in active businesses as UK economic recovery becomes more robust
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- Figure 17: Number of private sector businesses in the UK, 2001-15
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- Figure 18: Number of private sector businesses in the UK, 2001-15
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- Figure 19: Number of VAT and/or PAYE registered enterprises in the UK, by industry group and turnover size band, 2015
- Public and political scrutiny surrounding corporate tax
- Measures put in place to crack down on tax avoidance
Market Size
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- Key points
- Overview
- Legal services sector undergoing a period of gradual but significant change
- Downward pressure on prices for legal services is forcing firms to evolve business models
- Mid-tier firms have emerged stronger following the recession
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- Figure 20: Turnover of the UK legal services industry, 2011-15
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- Figure 21: Turnover of UK legal services industry, 2011-15
Market Segmentation
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- Key points
- Market segmentation by profession
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- Figure 22: Turnover of UK legal services industry, by type of business, 2011-15
- Segmentation by category of work (solicitors only)
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- Figure 23: Turnover of UK solicitor firms, by type of work, 2015
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- Figure 24: Turnover of UK solicitor firms, by type of work, 2015
- Figure 25: Breakdown of UK solicitor firms, by type of work, as of January 2015
- Demand for legal services by end-use sector
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- Figure 26: Top sources of business demand for legal services
- Conveyancing market
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- Figure 27: Average number of transactions by Conveyancing firms, 2011-15
- Wills & Probate
- Wills market offers considerable growth potential
- Probate market sees shift towards DIY, but opportunities for professionals remains
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- Figure 28: Number of applications for grant representation, 2010-13
- Personal injury
- Recent reforms restrict growth potential of personal injury market
- Proposed introduction of fixed legal fees for clinical negligence
- Other areas of work
- Employment law
- Family law
- Regional analysis
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- Figure 29: Regional analysis of the UK legal services sector , 2015
- Overseas trade in legal services
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- Figure 30: International trade in legal services, 2010-14
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- Figure 31: Net exports of legal services, 2007-14
Market Trends
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- Key points
- Increased demand for non-traditional legal services
- Trend towards unbundling of legal services continues
- Pricing pressures and the continued shift towards the fixed pricing model
- Legal services providers face increased competition from accountants
- Firms move towards more integrated service offerings
- Current technological developments in the legal services sector
- Growth in DIY law set to continue
- Online dispute resolution and proposed online court
- International presence of law firms is becoming increasingly important
- SME business sector offers growth potential
Industry Structure
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- Key points
- Industry development
- Types of legal service providers is highly diverse
- Rise in the number of overseas law firms in London
- Top 20 commercial legal firms
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- Figure 32: UK top commercial law firms, by turnover, 2015
- Structure of UK legal activities industry
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- Figure 33: Analysis of the changes in the structure of the UK legal activities industry, 2011-15
- Solicitor firms
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- Figure 34: Number of practising solicitors in the UK, 2011-15
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- Figure 35: Population of practising solicitors, 2009-16
- Figure 36: Breakdown of solicitor Firms, by type, March 2014 and February 2016
- Practising barristers
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- Figure 37: Total barristers in practice, 2010-14
- Structure by employment
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- Figure 38: Analysis of the employment structure of the UK legal activities industry, 2014 and 2015
- Structure by turnover
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- Figure 39: Analysis of the financial structure of the UK legal activities industry, 2014 and 2015
Company Profiles
Allen & Overy
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- Company strategy
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- Figure 40: Financial analysis of Allen & Overy, 2011-15
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- Figure 41: Allen & Overy practice breakdown by sector, 2015
- Figure 42: Allen & Overy practice breakdown by geographic segment, 2015
Clifford Chance
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- Company strategy
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- Figure 43: Financial analysis of Clifford Chance, 2011-15
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- Figure 44: Turnover analysis of Clifford Chance, by geographic segment, 2015
CMS Cameron McKenna
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- Company strategy:
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- Figure 45: Financial analysis of CMS Cameron McKenna, 2009-13
Dentons UKMEA
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- Company strategy
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- Figure 46: Financial analysis of Dentons UKMEA, 2011-15
DLA Piper International
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- Company strategy
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- Figure 47: Financial analysis of DLA Piper International, 2011-15
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- Figure 48: Turnover analysis of DLA Piper International, by geographic segment, 2015
Freshfields Bruckhaus Deringer
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- Recent company developments
- Company strategy
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- Figure 49: Financial analysis of Freshfields Bruckhaus Deringer, 2011-15
Herbert Smith Freehills
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- New global alternative legal services business launched in 2015
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- Figure 50: Financial analysis of Herbert Smith Freehills, 2011-15
Hogan Lovells International
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- Company strategy
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- Figure 51: Financial analysis of Hogan Lovells International, 2011-15
Linklaters
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- Company strategy
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- Figure 52: Financial analysis of Linklaters, 2011-15
Norton Rose Fulbright
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- Company strategy
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- Figure 53: Financial analysis of Norton Rose Fulbright, 2011-15
Slaughter and May
Market Forecast
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- Key points
- The market 2016-20
- Technological developments
- Fixed-fees services structure becoming common place
- Competition from non-legal firms set to further intensify
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- Figure 54: Forecast turnover of the UK legal services industry, 2016-20
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- Figure 55: Forecast turnover of the UK legal services industry, 2016-20
Further Sources and Contacts
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- Regulatory bodies and professional associations
- Trade exhibitions
- Trade magazines
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